India's new domestic sourcing mandate for solar cells aims to cut import dependence, but a massive supply gap is leaving smaller, non-integrated manufacturers feeling the squeeze. The Ministry of New and Renewable Energy’s new domestic sourcing mandate for solar cells, effective June 1, introduces significant structural shifts for India’s solar sector. The policy mandates that all net-metering (such as PM Surya Ghar: Muft Bijli Yojana) and Open Access solar projects use domestically manufactured solar cells. Key Data points: Capacity Mismatch: India’s solar module manufacturing capacity stands at nearly 200 GW per annum, whereas domestic solar cell manufacturing capacity is severely limited at around 30 GW. Production vs. Installations: Annual solar module production is estimated at 60 - 65 GW, significantly higher than the projected solar capacity installations of around 45 GW for 2025 - 26. Plant Dynamics: Module assembly plants face underutilization, with capacity levels hovering around 30 - 40%. Meanwhile, limited competition allows domestic cell manufacturers to command high margins of 20 - 30%. Exemptions: Large utility-scale solar projects bid out before August 31, 2025, are exempted from this requirement. While the policy aims to reduce import dependence and boost domestic cell infrastructure, non-integrated smaller manufacturers face immediate supply risks and market consolidation pressures. Try this : Consider the following statements regarding India's new domestic sourcing mandate for solar cells: The mandate requires net-metering and Open Access solar projects to use domestically manufactured solar cells. India's solar module manufacturing capacity is substantially higher than its domestic solar cell manufacturing capacity. Large utility-scale solar projects bid out before August 31, 2025, are exempt from the mandate. The policy is expected to eliminate supply constraints for smaller non-integrated solar manufacturers in the short term. Which of the statements given above are correct? A. 1 and 2 only B. 2, 3 and 4 only C. 1, 2 and 3 only D. 1, 2, 3 and 4